The package is available to intermediaries who sign clients up to its Peace of Mind home insurance or Paymentcare
mortgage payment protection insurance (MPPI) policies. On each of these types of cover, intermediaries will now receive a percentage of the annualised premium* as a lump sum when a new policy comes into force and further renewal commission, paid in monthly instalments, replacing Abbey's previous flat commission fee.**
To promote the new deal, until the end of the year Intermediaries will also be automatically entered into a prize draw every time they complete a full insurance quote online. Prizes include a weekend break in Monte Carlo and a trip to Spain to watch Barcelona vs Real Madrid.
Lloyd Wilson, head of insurance marketing at Abbey, said: "Peace of Mind and Paymentcare are both strong products for the Intermediary market. Our previous commission fee did not reward intermediaries based on the size of premiums involved in the sale. However, Abbey's new competitive commission
package, combined with its strong products and online application system will give intermediaries an additional and ongoing income stream."***
Peace of Mind home insurance provides people with an unlimited sum insured on their buildings and contents cover. This means that they do not risk finding themselves under-insured if they need to make a claim. Paymentcare,
Abbey's comprehensive MPPI policy, is available for accident and sickness and/or redundancy. Unlike many other products, Paymentcare covers policy holders for backache and stress. Homeowners can also choose any combination of cover that best suits their needs.
* Commission is paid on the premium exclusive of Insurance Premium Tax.
** Upfront payment for a new policy will be paid in a lump sum as soon as the policy has commenced. Renewal commission will be paid on a monthly basis. Abbey will recover the full commission amount should the policy be cancelled
within 120 days from inception. After the annualised renewal of the policy, Abbey will pay monthly commission up to the point the policy cancels, any commission paid out after the cancellation date of the cover will be recovered.
*** These comments reflect the views and opinions of Lloyd Wilson. They are not intended as a substitute for legal or other professional advice.
